Remortgage Applications Rise Dramatically

Friday, 9 May, 2008

Applications for remortgage loans have rocketed in the last year, new figures have revealed.

Data compiled by the Mortgage Advice Bureau (MAB) show that the number of remortgage loans taken out over the past year has increased by a whopping 27 per cent. Interestingly, and maybe not surprisingly considering the credit crunch, home buyer mortgages have fallen by almost exactly the same volume during the last year.

Brian Murphy, Head of Lending at MAB, spoke to the media about the latest figures, saying: "With less people choosing to buy, increasing levels of business now comes from remortgage clients."

He also commented on the current home buyer situation, adding, "Within the mortgage arena, the demise of the 100 per cent mortgage also indicates a relatively bleak outlook for first-time buyers"

Many people, especially first-time buyers, have been given little choice about being able to invest in property following lender decisions to no longer offer 100 per cent mortgages. The Royal Bank of Scotland, Halifax and Scottish Widows all pulled their 100 per cent mortgages as the credit crunch started to bite, and Abbey held out the longest but was forced to follow the competition and in early April withdrew their service too.

David Hollingworth from London & Country talked to the Guardian, saying, "Abbey was hanging on in there offering 100% mortgages when everyone else had departed the market.

"But you simply can’t any longer be the last man standing as you get swamped with applications."

Source: http://financialadvice.co.uk/news/